When John Spomar III signed a lease for the photo studio of his
dreams, located in a Chicago business incubator, the commercial
photographer wasn't exactly sure what to expect.

"All I knew was, I was tired of working from my
parents' house and telling clients that they couldn't come
to my `studio,' because we would have been meeting in my
bedroom," says Spomar. "I needed some respectability, and
the price was right."

After signing the lease the day before his 24th birthday, Spomar
could now access a studio to die for. The 1,600-square-foot office
even included a real darkroom--a definite step up from developing
pictures in his parents' laundry room.

That was five years ago. Today Spomar, 29, is three months shy
of graduating from the Chicago Southland Enterprise Center. With
incubator experience in his arsenal, he feels well-equipped to
leave the nest--and find success in the commercial photography
business.

"Thanks to the incubator, I've been able to completely
devote the past five years to building my business, and it's
really paid off," says Spomar, whose company, John Spomar
Productions Inc., is making a name for itself in the Chicago area.
"I've increased my sales by 20 percent each year. Without
the incubator, I wouldn't have come this far."

Spomar is part of a growing number of young entrepreneurs taking
advantage of the incubators sprouting up all over the country. In
many ways, such establishments are similar to their namesake.
Within a protected, safe environment, start-up entrepreneurs get a
cost-effective place to nurse their fledgling businesses until
they're mature enough to take flight on their own.

While incubating their businesses, tenants have access to a
number of benefits, including such services as secretarial and
receptionist help, business and technical expertise, and assistance
seeking financing. They also enjoy perks not available to bigger
businesses, including office space at below-market rates, flexible
lease agreements and opportunities to network with a variety of
start-up entrepreneurs.

Julie Bawden Davis (JulieBawdenDavis@daviscomms.com.)
specializes in homebased and small-business issues. She wishes
there were an incubator for freelance writers so she'd have
someone besides her cat to talk to all day.

Multiplying Like Fruit Flies

Incubators aren't new by any means, but the concept has
taken years to finally catch on. Although the first incubator
opened in 1959 in New York, by 1980, only 12 existed.

Today those numbers have skyrocketed: "There are 600
incubators in North America alone, and it's estimated there are
2,500 in the world," says Dinah Adkins, executive director of
the National Business Incubation Association (NBIA). "North
American incubators have created nearly 19,000 companies still in
business, and more than 245,000 jobs. It's a real positive,
considering [large] corporations have been downsizing every year
for the last 10 years."

Except for restaurant and retail operations, most start-up
businesses are well-suited for an incubator, says Adkins. "The
main areas [incubators] cover include research and development,
manufacturing and service."

Entrepreneurs can find support in one of three main types of
incubators. NBIA statistics show that most incubators are
mixed-use, meaning they serve a variety of industries. Technology
incubators, which target clients involved in creating and
commercializing new technologies, are another major category.
Generally, these two types of incubators aim to bring outside
investments into a particular geographic area to expand the tax
base.

The third type involves a smaller number of incubators (only 5
percent), but it appears to be a fast-growing segment. Known as
empowerment incubators, these mixed-use facilities focus on clients
considered underprivileged and underserved, such as minorities and
women. Such empowerment incubators are often situated in
economically distressed areas in hopes of revitalizing the
regions.

Incubators provide a win-win situation for both the entrepreneur
and the community, says Sandy Bourne, president of the Pasadena
Enterprise Center in Pasadena, California, a mixed-use, private,
nonprofit incubator. The center is located in an urban area
targeted for revitalization and helps local minority- and
women-owned businesses.

"Not only do incubators provide entrepreneurs with critical
expert help during their start-up phase, they also tend to produce
companies that survive," says Bourne. "NBIA statistics
show that more than 87 percent of incubator businesses are still
open five years [after leaving the incubator]. The supportive
environment and accessible expert services really give
[entrepreneurs] the edge needed to thrive."

Marisol Barrios-Jordan is a case in point. She feels she owes
much of her rapid success to her incubator experience at the
Pasadena Enterprise Center. In less than a year, the 26-year-old
publisher of Latina Bride Magazine has built her
publication's circulation to 50,000.

"The incubator experience has been invaluable for us,"
says Barrios-Jordan, who started the magazine in December 1997. She
and her partner, Michelle Nordblom Hottya, also 26, came up with
the idea after planning their own weddings and discovering a lack
of wedding information for Latina brides.

"We've taken advantage of the many consultants
available at the incubator, whose services we wouldn't be able
to afford on our own," Barrios-Jordan says. "We were even
able to connect with a printer, who extended us credit for the
first and second issues of the magazine."

We Are Family

Perhaps one of the biggest benefits of incubators is being part
of what is essentially an entire entrepreneurial community, says
Joel Wiggins, assistant director for the Austin Technology
Incubator in Austin, Texas. "There's a synergy that
develops within incubators. Everyone celebrates when someone gets a
contract."

Barrios-Jordan has found the camaraderie at her incubator
priceless. "Being with other minority business owners is
wonderful, because we feed off each other and help each other
through similar experiences," she explains. "We have
monthly roundtable meetings, and we've even formed our own
informal board of directors. We meet once a month to
brainstorm."

It's this type of "doorway consulting" that makes
incubators so valuable, says Sam Pruett, executive director of the
Genesis Technology Incubator in Fayetteville, Arkansas. "Our
experience has been that there is a huge feeling of isolation for
many start-up businesses," he says. "The incubator keeps
them connected to other entrepreneurs in similar
situations."

Too Much Of A Good Thing?

Although the drawbacks to incubator life are minimal, as you
might have guessed, there are a few. Perhaps the biggest is that
you're expected to participate in various communal incubator
events, which, though helpful, will take you away from your
business. You must also be willing to accept help.

"You can't go in thinking you just want reduced rent
and you don't need any assistance," says Bourne at the
Pasadena Enterprise Center. "Regular meetings [on technical
assistance and business counseling] are generally
required."

The acceptance policy varies among incubators, but in general,
they're looking for business ideas with potential and
entrepreneurs who can make their visions realities. This often
includes writing a solid business plan and submitting a personal
financial statement.

Most incubators require tenants to graduate and move out after a
specified period of time, usually after four or five years. Being
booted from the nest may seem harsh, but if you've used your
time there to the fullest, your business will be more than ready to
spread its wings and fly unassisted to even greater heights.

The Choice Is Yours

Just as no two entrepreneurs are the same, no two incubators are
alike, either. To choose the right home for your budding business,
get answers to these questions:

What is the incubator's mission? Is management
interested in revitalizing a certain area of the community, or do
they want more out-of-state and international action? If
import/export is your business, the latter incubator would be your
best bet.

What experiences have other tenants had? Talk to other
tenants about what it's like in the incubator. Their stories
will speak volumes.

What's the incubator's track record? Ask for
statistics. How many jobs has the incubator created? How many
companies have survived outside the incubator's walls, and how
well have they done over the long haul?

What are its policies and procedures? Are some services
free of charge? How long can you stay? Is there a graduated rent
structure as your firm matures? Does the incubator take royalties
on ownership rights? If your business goes belly-up, can you leave
easily?

Do you like the facilities? Do the office suites and
amenities meet your needs? Are there regular seminars and business
training programs?

Smart Move

Speak your mind.

To get the most from your incubator experience, keep the
following in mind:

Don't be afraid to admit your goofs.

Ask a lot of questions.

Network with other incubator clients.

Write Away

For information about incubators near you, send an SASE to the
NBIA, 20 E. Circle Dr., #190, Athens, OH 45701, or visit http://www.nbia.org.